Maravi

(HERALD) ‘Speed up processing of agric loans’

‘Speed up processing of agric loans’
By John Kachembere

LOCAL farmers attending the Harare Agricultural Show have expressed concern over lack of funding and delays in the processing of loans for agricultural activities. Such constraints had hit hard on productivity. They said huge financial resources were needed for major agricultural projects. It was difficult to secure funding, however, farmers said, and this has negatively impacted on optimum land utilisation.

The farmers believe that if the country is to retain its status as the breadbasket of Southern Africa more need to be done to expedite the disbursement of money for capitalisation.

"In most cases we access funds late thereby disrupting continuity on the farms and this has adverse effects on agriculture production," said one of the farmers.

An official with the Zimbabwe Farmers Union said some commercial banks were giving priority to seasoned farmers they have dealt with for years. Most of the farmers were finding it difficult to fully utilise the land allocated to them owing to limited resources.

"Production should be seen as a culmination of meticulous planning and appropriate financing as is the case on the international scene where there is a deliberate effort to support different sectors," he said.

Premier Bank, Kingdom Bank and Agribank are among many financial institutions that have committed themselves to funding agriculture. Mr Fanuel Mutandiro, a Mazowe farmer who specialises in horticulture said his area is capital intensive and farmers expect the Agribank to provide agricultural finance on time so that they can have a good season.

"Many of us with limited resources have demonstrated that we are responsible farmers who can be trusted and have attended various agricultural courses because we want to do our best for the country," he said.

A tobacco farmer from Gutu, Mr Regedzai Torovei, said the conditions for getting a loan were laborious and time consuming to the extent that by the time they access loans, almost half the value would have been lost.

The farmers also said the current process where the individual farmer has to submit three quotations when applying for a loan for the installation of irrigation facilities has proved costly and ineffective.

Successful agriculture development is heavily dependent on adequate financing and mechanisation. It is in this vein that farmers are therefore appealing to the Government to explore new ways of providing funds for agriculture.

Labels: AGRICULTURE, THE HERALD

posted by MrK @ 8:35 PM